October 01, 2008

Viewer questions focus on bank safety and credit availability

When the economy trembles, investors look for a safe place to store their money. Viewer questions this week included concern about the safety of annuities, muni bonds and banks. Another viewer wondered whether or not to close a frozen HELOC after he paid it off.

Click here for the questions and the video segment.

Allie in Worcester:I have an annuity up for renewal next month. How do I know if the insurance company is safe? Should I lock it in for another 7 years or should I go with another financial institution?

Jackie in Shrewsbury:I have $20,000 to invest for a house down payment in 2-4 years. My adviser is recommending municipal bonds as a low-risk option with a better interest rate than my savings account. Are bonds better than savings or even CDs?

Laurie from New Hampshire:What does it mean if my bank is not rated on BankRate.com? Should I move my money to a bank that is rated on this site?

Jason from Provincetown:After paying off the HELOC we used to purchase our vacation condo, Chase suspended the line until we re-appraised our primary home. Should I just close the line out so it's not reflected on our credit report as available credit?